Splish Brothers Inc. engaged in the following cash transactions during 2017.Purchase of land$120,000Purchase of treasury stock43,000Issuance of preferred stock213,000Sale of land and buildings268,000Payment of cash dividends33,000Purchase of equipment68,000Retirement of bonds309,000Splish Brothers reported net cash provided by operating activities of $590,000. Determine Splish Brothers's free cash flow. (Showamounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)Free cash flow$

Free Cash Flow=Net Operating Profit After Taxes-Total investment in operating capital

Answered: Splish Brothers Inc. engaged in the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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During 2017, Simms Company redeemed $2,000,000 ofbonds payable for $1,880,000 cash. Indicate how thistransaction would be reported on a statement of cashflows, if at all.
Use the following information to prepare the Operating Activities section of the Statement of Cash Flows WalkRight Inc. For the Year Ended December 31, 2017 $ 1,600,000 Net Income Proceeds from Issuance of Common Stock $ 1,000,000 Increase in inventory Increase in Accounts Payable 400,000 $ 250,000 Purchase of Equipment $ 1,200,000 Payment of Cash Dividend 500,000 750,000 $ Depreciaiton Expense Increase in Accounts Receivable 200,000 Payment of Mortgage 60,000 Reminder: You are being asked to prepare the Operating Activities section only. WalkRight Inc. Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities
Preparing the statement of cash flows—direct methodDiversion Rare Coins (DRC) was formed on January 1, 2018. Additional data for the year follow: a. On January 1, 2018, DRC issued no par common stock for $450,000. b. Early in January, DRC made the following cash payments: For store fixtures, $46,000 For merchandise inventory, $310,000 For rent expense on a score building, $18,000 c. Later in the year, DRC purchased merchandise inventory on account for $238,000. Before year-end, DRC paid $138,000 of this accounts payable. d. During 2018, DRC sold 2,700 units of merchandise inventory for $400 each. Before year-end, the company collected 85% of this amount. Cost of goods sold or the year was $340,000, and ending merchandise inventory totaled $208,000. e. The store employs three people. The combined annual payroll is $97,000, of which DRC still owes $6,000 at year-end. f. Ac the end of the year, DRC paid income tax of $18,000. There was no income taxes payable. g. Late in 2018, DRC paid…
(Computation of Operating Activities—Direct Method) Presented below are two independent situations.Situation A: Annie Lennox Co. reports revenues of $200,000 and operating expenses of $110,000 in its first year of operations, 2017. Accounts receivable and accounts payable at year-end were $71,000 and $29,000, respectively. Assume that the accounts payable related to operating expenses. (Ignore income taxes.)InstructionsUsing the direct method, compute net cash provided by operating activities. Situation B: The income statement for Blues Traveler Company shows cost of goods sold $310,000 and operating expenses (exclusive of depreciation) $230,000. The comparative balance sheet for the year shows that inventory increased $26,000, prepaid expenses decreased $8,000, accounts payable (related to merchandise) decreased $17,000, and accrued expenses payable increased $11,000.InstructionsCompute (a) cash payments to suppliers and (b) cash payments for operating expenses
Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders Equity Current liabilities: Accounts payable Interest payable PLASMA SCREENS CORPORATION Balance Sheets December 31, 2024 and 2023 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retaibed earnings Total liabilities and stockholders' equity Additional information for 2024 1. Net Income is $71000 68 2024 $113,500 78,800 97,000 4,400 490,000 798,000 (430,000) $1,151,700 $101,000 6,300 8,400 105,000 710,000 221,000 $1,151,700 Next > 2023 $125,600 93,000 81,800 2,200 490,000 680,000 (272,000) $1,200,600 $86,800 12,600 5,200 210,000 710,000 176,000 $1,200,600
APS Company issued 20,000 shares of $1 par common stock for $40 per share during 2017. The company paid cash dividends of $48,000, sold an old machine for $3000 and issued long-term notes payable of $440,000 during the year. What amount of cash flows from financing activities will be reported on the statement of cash flows? $1.195,000 net cash inflow. $352,000 net cash inflow. $705,000 net cash outflow. $1,192,000 net cash inflow.
SOL Company reported net income for 2016 in the amount of $200,000. The company’s financial statements also included the following: Increase in accounts receivable $ 40,000 Decrease in inventory 30,000 Increase in accounts payable 100,000 Depreciation expense 52,000 Gain on sale of land 74,000 What is net cash provided by operating activities under the indirect method? a. $216,000 b. $268,000 c. $290,000 d. $416,000
create a statement of cash flows with the given information: Scruggs, Inc. Balance Sheet December 31, 2017 2016 Cash $17,000 $12,000 Account receivable 60,000 40,000 Inventory 84,000 70,000 Prepaid expenses 6,000 4,000 Property, Plant & Equipment 250,000 210,000 Accumulated depreciation (60,000) (48,000) $357,000 $288,000 Accounts payable $35,000 $40,000 Interest payable 3,000 4,000 Income taxes payable 22,000 12,000 Bonds payable (due in 2020) 90,000 64,000 Common Stock $5 par 95,000 80,000 Retained Earnings 112,000 88,000 $357,000 $288,000…
During 2018, T Company engaged in the following activities: Distribution of cash dividends declared in 2017 $ 48 Fair value of shares issued in a stock dividend 220 Payment to retire bonds 452 Proceeds from the sale of treasury stock (cost: $52) 60 In T's statement of cash flows, what were net cash outflows from financing activities for 2018?
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The accounting records of MVD Sales, Inc. include the following accounts: (Click the icon to view the accounts.) Compute MVD's net cash provided by (used for) operating activities during July 2016. Use the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and to show net cash used for operating activities. If a box is not used in the table leave the box empty; do not select a label or enter a zero.) MVD Sales, Inc. Statement of Cash Flows (Partial) For the Month Ended July 2016 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Net Cash Provided by (Used for) Operating Activities Account Cash Accounts Receivable Merchandise Inventory Accounts Payable Beginning Balance $ 5,500 19,000 17,000 13,000 Accumulated Depreciation- Equipment 50,000 Jul. 1 3,000 Depr. Exp. 53,000 Jul. 31 Dividends Ending Balance $ 3,500 15,500 21,000 17,500 Retained Earnings 20,000 65,000 Jul. 1…

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